Measures Adopted by Foreigners Barring Brazilian Meats Are most Likely Temporary

03/21/2017 - 11h29

The Carne Fraca (Poor Meat) Operation has already devastated public perception of Brazil's meat industry. It has also strengthened the country's competitors. However, of all the crises the country has faced, this one will most likely be the shortest.

Brazil's market share abroad is so significant that - despite initial reactions - few countries that import meat will be capable of circumventing Brazil's protein supply.

Importers will evidently start using more potent "magnification glasses" to assess the quality of Brazil's products, and Brazil's industry cannot make anymore mistakes from now on.

The country can't just claim it has high standards: it has to prove it and maintain these standards.

Why will pressure exerted by importers probably wear thin soon? First of all, because international demand for protein is high. Rapid increases in prices abroad support this observation. The price of Brazilian pig meat exports is 41% higher when compared to the same period last year.

CHICKEN

The external market is also applying pressure on the country's poultry sector. Prices obtained by Brazilian exporters are 21% higher in March when compared to the same period last year.

There is less pressure when it comes to red meat, although current prices are over 10% higher when compared to the same period last year. These statistics were released by the Secretary of International Commerce on Monday (20).

Sanitary issues around the world are another factor that will probably help maintain demand for Brazilian meat. Big markets such as the ever-demanding European Union, and the United States and China, frequently find themselves plagued by recurring illnesses tied to the poultry and swine industries.

The major difference between such situations and Brazil's is that in those other countries diseases affect production and result in the need to put down entire herds of animals.

Brazil's situation is temporary and can be fixed by adjusting regulations. However, the country will need to demonstrate to importers that its internal problems have been addressed.

RED MEAT

Brazil continues to be the world's main supplier of red meat. However, the country's market share as a supplier of the protein may diminish in the years to come.

Producers of red meat, such as the United States and Argentina - Brazil's main competitors - are putting their industries back together.

However, they will probably only begin to really participate in the world market in a few years. The United States, which had 88 million head of cattle back in 2014, should reach 93 million head of cattle this year.

Argentina's new government, and its less-stringent grip over the sector, will probably allow the country to reach 54 million head of cattle this year. In 2012, the number was 49 million.

Translated by THOMAS MATHEWSON

Read the article in the original language